If You Live in Certain States, Your Unemployment Checks Can Work Towards Starting a Business

All states have some form of unemployment insurance, but in five states--New York, New Jersey, Washington, Pennsylvania, and Oregon (and apparently from their inclusion in this document, Delaware)--the unemployed have another option.  In the other 45 states, the unemployed have to show that they are working towards another job by training and/or pounding the pavement.  But in these five states, there is a self-employment assistance program.  Unemployed workers in these states can earn their check by proving that they are working to become self-employed--that they are training to set up a workable business, writing a business plan, or other concrete steps to start a business, and the usual job hunting requirements are waived.

What are the requirements for this?  Each state has different regulations that you can find here.  While this page is set up for policy makers in other states, it lets you know what is expected. 
The U.S. Department of Labor is trying to expand this program to other states, and has given money to states across the country to set up their own programs.  If you (sadly) become eligible for unemployment insurance in your state, ask if your state has a self-employment assistance program, and what you need to go to become eligible.

Entrepreneurship Training for Ex Offenders--Starting Your Own Business

An obvious way to help ex-offenders become legitimate earners is to teach them how to start a business.  Many employers aren't crazy about hiring them, and starting a business is a risky thing, while lots of ex-offenders are O.K. with risk taking.  So where are programs to help them do this?

In looking it over, I found some common threads: 1) many programs start right in prison, among active prisoners, rather than people out on the street. However, some work with released people and 2) yep, there's no grants or money giveaways.  At best, some offer the chance to get a microloan on favorable terms.  But the training in entrepreneural skills, especially writing business plans that you can present to institutions that loan money, is important in being able to get access to money.

Where to look?  Probably the most well-known is PEP (Prison Entrepreneurship Program) in Texas, in which inmates are chosen from across the Texas penal system to participate, after which they are transferred to the Cleveland (TX) facility and given an intensive course in business startup skills like marketing, finance and business plan writing.  The inmates have to be within 18 months of the end of their sentences, with at least 6 more months to serve, and must read and do math on at least the 10th grade level. Likewise, the Oklahoma Ex Offender Entrepreneural Training and Support Services are for inmates with GEDs or high school diplomas who are close to release. For women prisoners in Washington State and Oregon, there is the LIFE Prison Re-entry program that teaches entrepreneural skills to prisoners at Coffee Creek Correctional Facility in Wilsonville, OR, and the Washington Correctional Center for Women.

But what's out there once you're out?  There are a few things around the country.  One is Defy Ventures in metropolitan New York, which offers business training.  JVSChicago runs all sorts of business and job training, but has in the recent past offered the B.E.S.T program especially for ex-offenders. Project ReMade in the San Franciso area run by the Stanford Law School provides business training for women ex-offenders that have been out at least a year, but less than five years who have a high school diploma or a GED.  WIBO (Workshop in Business Opportunities) in New York that does all sorts of business training has workshops for ex-offenders.  Most interestingly, in the San Francisco area, the Springmeyer Law Firm offers pro bono services for ex-offenders who are starting up their businesses.

For more information on ex-offender business training opportunities, see this Inc magazine article, which is a few years old, but still has good information.

Businesses Can Use Linked Deposits to Borrow Money Cheaper

What’s a linked deposit, and how can it help your business get a lower cost loan? It’s simple. State and local governments gather up money all the time, and need somewhere to invest and grow it. Some of them figure that they can kill two birds with one stone—invest the money in the form of CD’s in lending institutions in their state, linked to the amount that the institution loans to certain types of businesses in that state, at a lower rate (maybe a couple of percentage points) lower than the going rate. That interest rate savings is passed along to the borrower, and makes borrowing money a couple of percentage points cheaper as a result.


Like most government programs, it is pointed towards a particular end—mostly business development, and particularly, the type of businesses that the state has an eye towards growing. So, in Washington State, certified military service members and veterans have a linked deposit program to provide cheaper loan money for veterans in business. In Maryland, there is a program for certified minority business people. Oklahoma has several programs—for agriculture, small business, and developers of affordable housing. Ohio has a bunch—more than I realized. Besides the one for small business, there is one for agriculture. There’s another one for the rehabilitation of underground petroleum tanks and another one for logging and silviculture. In fact, Ohio has the only linked deposit system of saving that I know of for individuals—SaveNow, which allows a higher rate of savings return for individual Ohioans.

There is no one centralized list of linked programs, even in one state. Many are run out of the state’s treasurer’s office, but not all. Here’s a list of state treasurer’s offices, just to start. To find more possible programs in your state and see if you are the type of business your state wants to grow, Google the name of your state and “linked deposit” program.  Remember that you will still have to come up with a good business plan, and be credit worthy.  These programs are no guarantee that you will be loaned the money!  But they are a good option to consider.

Got a Countrywide Mortgage? You May be Eligible for Help.

Bank of America, the new parent company for Countryside, has settled the suits against it by the governments of: Illinois, California, Iowa, Ohio, Texas, Arizona, Washington and Connecticut. The states of North Carolina, West Virginia, Indiana and Michigan were also in settlement talks. They involve accusations of deceptive mortgage practices by Countryside in the last few years. Among the charges by various state's attorneys-general, Countryside offered "teaser" rates that were short-lived and then jumped significantly. It's alleged that they also offered loans to people who could not adequately document their incomes, knowing that they would be unable to pay in the future. The total amount of money under the state settlements could run up to $8 billion dollars, and affect 400,000 borrowers.

What does this mean for you? If you had a mortgage from Countryside, depending on the settlement struck by your state, you may be eligible for a renegotiation of your mortgage, or foreclosure relief. It's earmarked for customers who have been foreclosed on or are in serious risk of foreclosure. In Ohio, eligible mortgage holders should soon start getting letters, telling them about their options. For more information, call 1-800-669-6607.

If you are in one of the other states affected, and have gotten a loan from Countrywide in the past few years, contact the attorney general's office in your state to see if you may be eligible for assistance.